Minimalism means that a person should be living with less and just enough things that is needed in their daily lives. It greatly affects the financial aspect of our life and helps in lessening possible burdens such as debts and unnecessary expenses. Let’s see how minimalism can actually change your life and help you make wise decision when spending.
You don’t need everything you OWN
Sadly, most of us buys things that is not really needed. We may have bought it because it looks cute and useful when in reality, we have no use for it at all and it just sits there on a specific place for a long time.
There is a smart way of getting rid of things that you rarely use, it is by following the 90:90 rule. The 90:90 rule allows you to evaluate possessions of your that you haven’t used for the last 90 days and you think you’ll not use for the next 90 days. If it fits both of the criteria, then it’s time to let go.
You will think that it will be easier to let go of things once you follow the 90:90 rule, but it’s not. You might find yourself looking at every little thing inside your home and still not find the courage of getting rid of it. Don’t worry, soon enough you’ll be able to let go of it.
You don’t need a huge house or apartment
Sometimes, the basis of your or other people in determining if you are living a good life is the size of the home. What you didn’t realize is that you don’t really need a big house or apartment especially if you are a single lady who’s often at work most of the day. Choosing an apartment that is good enough for you can actually save you a lot of money. Aside from a cheaper rent or mortgage, it costs less when it comes to your utility bills and its maintenance.
Studio apartments are cheaper than one- or two-bedroom apartments and actually inspires you more to be a minimalist. If you don’t want to rent, owning a small house is a good deal too.
Fewer expenses lead to more savings
It is very difficult to budget many things these days because there are many unnecessary expenses that adds up to your monthly bills that you never really thought of before. Back in the day, the Internet, Netflix, Hulu and many more does not exist. But these days, it seems like it became a need too.
It would be nice to remove those expenses and just continue with our simple lives. But the truth is, we cannot really let these things go as we are already used to having them with us. Instead, we will focus on the things that may help us budget more money. Here’s how:
- Use just one Credit Card – owning a lot of credit cards feels fantastic but it is not a smart move. Choose 1 card that offers everything you need, like rewards, and stick to it. It will be easier to keep track of your expenses when using just 1 card and the rewards can be redeemed if you find something that is worth redeeming for you.
- Open a single checking account and savings account – this should be different to the account where your salary enters. This account should only be used for emergency fund. It will be easier for you to transfer money between the two when needed.
Buying in bulk does not always cut down on the food bill
Everyone thinks that buying in bulk is so much cheaper than doing retail but not all of the time. Have you ever thought that the food you don’t often eat has an expiration date and might go to waste? Or how the spices have a limited shelf-life which means that they lose their potency after the date that is indicated.
Minimalism means that you only buy things that you need, often use or food that you can consume in between every grocery schedule. Food should be consumed rather than being put in the trash. So, from today onwards, stop buying items in bulk and save a lot of money for things that are necessary.